UK Government issues paper on online credit agreements

Internet Business News, Dec 16, 2002

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The UK Government has published a consultation paper which could result in online credit agreements becoming cheaper and more competitive.

The paper identifies four issues that need to be altered before consumers are safe entering into online credit agreements. The first one of these highlights the need to make it possible to contract electronically while the second one states that legislation should be revised from the original 1970s text. The third point asks for the current law on signatures to be translated to include electronic agreements and number four states that a method of dealing with cancellation rights needs to be put into place.

A spokesperson for the UK Government said that the move is intended to make consumer credit laws relevant to the current online and offline credit markets.

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